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Price Aspect:

until 25th April 2022, taking the Electrically Calcined Anthracite Coal with a specific resistance of 650 as a reference, the average market price of Electrically Calcined Anthracite Coal in China is 5000 yuan / ton, and the high price resources have risen to 5200 yuan / ton, but the transaction is limited. Taking the ordinary Gas Calcined Anthracite Coal with a specific resistance of 1250 as a reference, the average market price of ordinary calcined anthracite in China is 4300-4400 yuan / ton. This is mainly due to the strong rise in costs and the impact of resource constraints.

Cost Aspect:

because the raw materials of Electrically Calcined Anthracite Coal  are mainly high-quality anthracite in Ningxia, and due to the influence of environmental protection and other factors, raw material mining becomes difficult, and resources are gradually strained. In addition, an enterprise in Ningxia has become one of the main raw material suppliers, the price has also risen, and the export volume is limited. In addition, some enterprises purchase other type of anthracite.

Supply Aspect:

Recently, the production in Ningxia, the main producing area of Electrically Calcined Anthracite Coal in China, is relatively acceptable, and more orders are executed for delivery. Due to excessive cost pressure, some enterprises in the field have reduced production, the number of furnace starts has decreased, and the enterprises that have stopped production in the early stage will not resume production temporarily. In Inner Mongolia, according to enterprise personnel, although the central environmental protection inspection has been weakened, there are still rectification problems in environmental protection. Enterprises have no intention to resume production and mainly sell inventory, which will continue to be tracked.

Demand Aspect:

in terms of electrode paste, the mainstream production in the market is relatively good, and it is mainly to execute orders and deliver goods. However, there are some enterprises in the market that reduce production or enterprises that have stopped production in the early stage do not resume production temporarily, mainly due to excessive pressure on the cost side, pressure on the circulation of capital chain, limited orders of enterprises and no release of production temporarily. Some enterprise orders are difficult to execute in view of the high cost. In terms of cathode carbon blocks, the output is released slowly. Most enterprises mainly execute contract orders, and new orders are limited. From the demand side, the high price resources of electric calcined anthracite exert obvious pressure on the demand side and inhibit the downstream purchasing sentiment.

Future forecast:

the supply side will improve in the short term, mainly supporting the high price and strong operation of Electrically Calcined Anthracite Coal. The price of raw materials is currently high and resources are still tight. It is expected that the market price of electrode paste in China will continue to rise by 100 yuan / ton in the short term.

Source: https://www.linkedin.com/pulse/electrically-calcined-anthracite-coal-market-